A. Timbe Limited manufactures various components. One of the components is "EX" which pass through two production cost centres (Filtering and Mixing) and several service cost çentres. The prime cost of product "EX" is as follows: One unit of component "EX" takes 38.2 minutes in the Filtering Department and 52.5 minutes in the Mixing Department. The Direct Labour is paid at K11 per hour and K12 per hour in the Filtering and Mixing Departments respectively. K per Unit Direct Materials 15 Direct Labour: Filtering Department 7 Mixing Department 10.50 Cost Centre Budgeted Budgeted Actual Actual Overhead Activity Overhead Activity (K) (K) Filtering 45 000 32 500 34 213 29 750 Machine Machine Hours Hours Mixing 36 125 28 900 55 125 31 500 Direct Labour Direct Labour Hours Hours Required: (a) Calculate the overhead absorption rates for Filtering and Mixing Departments. (b) Calculate the over/under absorption of overheads in the two departments. (c) Calculate the total production cost per unit of component "EX"

A. Timbe Limited manufactures various components. One of the components is "EX" which pass through two production cost centres (Filtering and Mixing) and several service cost çentres. The prime cost of product "EX" is as follows: One unit of component "EX" takes 38.2 minutes in the Filtering Department and 52.5 minutes in the Mixing Department. The Direct Labour is paid at K11 per hour and K12 per hour in the Filtering and Mixing Departments respectively. K per Unit Direct Materials 15 Direct Labour: Filtering Department 7 Mixing Department 10.50 Cost Centre Budgeted Budgeted Actual Actual Overhead Activity Overhead Activity (K) (K) Filtering 45 000 32 500 34 213 29 750 Machine Machine Hours Hours Mixing 36 125 28 900 55 125 31 500 Direct Labour Direct Labour Hours Hours Required: (a) Calculate the overhead absorption rates for Filtering and Mixing Departments. (b) Calculate the over/under absorption of overheads in the two departments. (c) Calculate the total production cost per unit of component "EX"

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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